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New developments at the Point

Submitted by on 1, June 2, 2008 – 1:20 pmNo Comment

Troubled Alameda Point developer SunCal wants the city to let it bring in a financial backer. But the developer is refusing to tell the city what the terms of its agreement with the backer are, including under what circumstances it could fire SunCal from the project. According to this city staff report, SunCal wants D.E. Shaw & Co., a global investment and technology development firm that is partnering with SunCal on a major project in Albuquerque, N.M., to be added to the exclusive negotiating agreement the developer holds with the city. SunCal had originally said it would pay for the project itself, but the collapsing real estate market (and, one would suspect, the company’s own legal and financial troubles) led it to change its mind, according to the staff report. The two companies signed a term sheet last week but are refusing to share it with the city, per the report. A term sheet should lay out who is in charge of the project, how much money each party would contribute and under what terms D.E. Shaw could boot SunCal from the project. An operating agreement with more details is yet to be finalized. City staff want assurances that SunCal will stay invested and in charge of the project and that problems with its other development projects won’t affect us here – assurances that aren’t in the term sheet as it was described to them by the city’s economic consultant, who was allowed to see the document. Stay tuned …

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